Interesting article about Oil

wanghong

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0 Z3 s0 l& v# }$ E. [Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
" X# S) m6 S' {8 X3 n+ r! Dthese oil producer will go bankrupt or out of the business even if
( Y8 P3 c* e0 \+ ]1 y* kcrude prices improves. This implies also to good names such as Shell,
" }0 f6 ?0 |4 T0 m' `EXXON, BG, BP, Cheveron ....xyz.. oils
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; |: x) g+ D1 @) _# ~" b; F- NRecently OPEC reduced crude oil production twice over just a few
  p* X- u1 Y) G* q+ j8 D: Umonths. There are three wars going on in Gaza, Iraq and Afghandistan.
& R7 T' a& {' N% R, _5 x: X* ]A year ago these things would have spiked the price of crude oil by at
6 a4 Q. b+ E1 h3 W* E  |least $50.00 per barrel. Today, oil price declined by a record amount.


% c: A0 P9 X. n: W  wThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
3 R3 h# j; S5 ~. \$ x* fThis is the largest find in North America.
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, n$ ~7 Y* T$ R$ d% K/ {* z' ]7 d3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


; \- `6 ~0 k% [) ?8 u  _- |4. Production of bio-fuels is beginning to reach critical mass. Bio
! ?% u' g: b4 p  m# c4 ~* W; lfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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- Q' j# s+ z! W2 l2 K5. Virtually every restaurant in the US and all food processing plants
" v8 a) S) c: g& E- Iare now selling their used oil to bio-diesel producers. Every pork,
0 e5 P6 p+ |4 R! N4 F3 j, pcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
% ~# i3 ?# L  y. y$ lproducing 30,000 gallons of bio-diesel per day from pork fat.


: V9 U: B- ~5 U6. There are 99 nuclear reactors in various stages of planning and
6 i. c9 k- V% o- F& I$ pconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
. s; B! T6 ]% I2 a3 k+ m) ]will replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
9 Y; h( v1 u1 m# h" D' ~! Owith new more fuel efficient equipment. Airlines and railway companies
: [& ?$ S; O/ V4 f6 Q  V; v# Jare experiencing 20% to 25% better fuel econony with the new
equipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
7 a/ [9 |, ^: H9 i% J* W2 Ofuel is cleaner and performs better than jet fuel.
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/ C1 K- _( G0 n& O/ s9 L8. Cities and counties throughout the US are selling the rights to
+ S( d% N. r  ecapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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3 X" c6 v  Q$ c9. Coal is being transformed into a clean burning liquid fuel. The CO2
9 I$ X! ~0 }4 r) L6 b# ~2 iproduced as a byproduct is sold to oil companies for injection into
) U+ p; r, l, u2 y8 c  o# b( Loil wells.


0 i% ?* U+ a& `: f5 P10. Solar, wind and ocean energy is displacing oil as an energy
6 q( I/ X0 z' N8 E! a. `0 t, v4 Hsource. Three new wind turbines are being erected every day in the US.
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* l* U4 h. M& e: j* u7 s: yEach of the above by itself will not make a large difference in the
( W+ p. }1 f7 a4 Z( K5 lprice of crude oil but the sum of all of them together is world
2 \: ]7 s+ G( B& S$ }- f4 Q) {& C! Cchanging. The important thing is that OPEC no longer has the ability
+ @! T9 Q/ u$ H6 nto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
1 r" X  T$ {' bIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
5 n( q- f9 m! A1 ]$ y: g. B/ ]2009 ... FYI-Only